Limited company tax

Limited company tax follows a journey: company profit and Corporation Tax first, then how you extract value through salary, dividends, pensions or benefits. This hub orders those steps.

Where should I start?

Start with the Corporation Tax Calculator for company tax on accounting profit, then read Corporation Tax Explained for post-tax profit, then plan salary and dividends with the Director Salary & Dividend Calculator.

  • Calculate Corporation Tax: Use the Corporation Tax Calculator with accounting profit, adjustments, associated companies and your accounting period.
  • Understand post-tax company profit: Read Corporation Tax Explained for taxable profit, rates, marginal relief and filing deadlines.
  • Plan salary and dividends: Use the Director Salary & Dividend Calculator, then Director Salary and Dividends Explained and Dividend Tax Explained.
  • Considering a company pension: Read Employer Pension Contributions Explained.
  • Checking a non-cash perk: Read Benefits in Kind Explained.

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Frequently asked questions

Should I start with Corporation Tax or director pay?

Estimate Corporation Tax on company profit first, then model how much you extract as salary and dividends. The Corporation Tax Calculator and Director Salary & Dividend Calculator are designed for that sequence.

Is salary or dividends more tax-efficient?

It depends on profit, National Insurance, Employment Allowance, the dividend allowance, other income and how much you want to retain. There is no single best mix — model both company and personal tax together.

Who pays Corporation Tax?

The company pays Corporation Tax on its taxable profits. Directors pay Income Tax and National Insurance on salary, and Dividend Tax on dividends, separately.

Do employer pension contributions reduce take-home?

Employer contributions are usually a company cost and do not reduce the employee's cash take-home the way employee contributions do — see Employer Pension Contributions Explained.

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This hub is for general information only. It is not tax, legal or financial advice.